Yahoo News Wales tourism tax update as Welsh Government makes announcement
Welsh Government has today announced when it will introduce a tourism tax proposal to the Senedd. The Government also confirmed it would bring forward a statutory licensing scheme for all tourism accommodation in Wales.
The visitor levy would see a "small charge" paid by people staying overnight in visitor accommodation. Local authorities will decide whether they want to introduce them in their county.
The tourism sector has been vehemently opposed to the visitor levy - saying it will harm a crucial sector of the Welsh economy that provides thousands of jobs. But backers say the money raised can help improve local infrastructure for tourists and locals.
READ MORE: Dog plunges 30ft down cliffs after chasing a pheasant at seaside resort
READ MORE: Extension at Anglesey resort approved despite 'holiday let' fears
They are now common across many parts of Europe but the sector rightly points out that tourism businesses in most of those countries pay lower taxes overall than in the UK.
A joint statement from Mark Drakeford MS, Cabinet Secretary for Finance, and Rebecca Evans MS, Cabinet Secretary for Economy, Energy and Planning, said: "Subject to the Llywydd's determination, the Visitor Accommodation (Register and Levy) Etc. (Wales) Bill will be introduced to the Senedd on 25 November.
"This Bill proposes giving local authorities the power to introduce a visitor levy, which will be a small charge paid by people staying overnight in visitor accommodation. The levy will raise additional funds for local authorities to support the long-term sustainability of our tourism industry. Each local authority will be able to decide whether to introduce a visitor levy in its area, based on local circumstances."
The statement adds: "One of the Welsh Government’s tax principles is that our taxes should be developed through collaboration and involvement. Through consultation, continued engagement and the discovery work led by the Welsh Revenue Authority, we have received consistent feedback that we need a form of registration in place to support the levy. This has informed our decision to include a national register of all those providing visitor accommodation in Wales within the Bill.
"We have previously consulted on a statutory licensing scheme for visitor accommodation in Wales as a means of helping to establish a level playing field and to ensure visitors have confidence in the high-standards available throughout Wales. The registration scheme proposed in the Visitor Accommodation (Register and Levy) Etc. (Wales) Bill is the first step towards that scheme.
"We will be bringing forward the second Bill to move us towards a statutory licensing scheme and enable visitor accommodation providers to demonstrate how their accommodation meets certain conditions. We will continue to discuss and engage with tourism stakeholders, accommodation providers and local authorities as we progress these proposals."
While it will be introduced this week it could be 2027 before the tax is applied by a local authority.
Speaking previously, Suzy Davies, the chair of Wales Tourism Alliance, said: "All tourism tax countries have much lower rates of VAT for tourism products in those countries, 10% less generally.
“But the prospect of a 20% VAT rate plus the tourism tax, however modest, is not great news for tourism in GB, let alone Wales. And again it does not help us with that ‘Wales really wants you, welcome to Wales’ message that we need to be pushing.”
